Podcast Summary: The Martell Method w/ Dan Martell

Episode: How to Invest Your Money Like The 1%
Host: Dan Martell
Date: January 6, 2026

Main Theme & Purpose

In this episode, Dan Martell breaks down how the ultra-wealthy—specifically the top 0.1%—actually invest their money and time, shattering common misconceptions. Pulling from his own journey from rehab at 17 to a $100M empire and bestselling author status, Dan reveals the four key stages of wealth-building, focusing first on personal growth and business re-investment before looking at traditional assets. He provides actionable frameworks, vivid anecdotes, and a mindset shift designed to help entrepreneurs and ambitious professionals escape stagnation, avoid burnout, and accelerate both personal and financial growth.

Key Discussion Points & Insights

1. Wealthy People Invest Differently (00:00)

• Common Misconception: Most people believe wealth begins with investing in stocks or real estate.
• Reality: The elite prioritize investments in self, skills, and business well before financial assets.
• Quote:

  “The top 0.1% follow a completely different strategy than you think.” (00:34)

2. Stage 1: Invest in Your Foundation (Mental & Physical Health) (01:04)

• Health as a Baseline:
  “Once you get rich, the only thing you care about is that you feel good about yourself having that money.” (01:15)
• Priorities: Sleep, fitness, nutrition.
• Investment Hack:
  Dan recommends paying for an expensive gym to increase both commitment and to network upwards.
• Quote:

  “My best investment is in me because I will take me with me for the rest of my life.” (01:31)

• Networking Through Environment: “Cheap people don't go to expensive gyms...get around other CEOs, entrepreneurs…”

3. Stage 2: Invest in Skills & Knowledge (04:11)

• Best ROI Comes from Learning:
  “The best investments. The best ROI is to just buy better thinking.” (04:24)
• Pay for Blueprints: Get answers from experts and mentors, turning teachers into relationships and leveraging their compressed knowledge.
• Personal Anecdotes:
  • Dan’s own education via 1600+ business books and direct outreach to influential authors.
  • His son investing in digital courses at age 12.
• Networking for Growth:

  “Your network is your net worth. Turns out, wildly right?” (07:55)

  • Reference to the impact of Keith Ferrazzi's “Never Eat Alone.”
• “Just In Time” vs. “Just In Case” Learning:
  • Focus your learning to solve current problems, not hypothetical ones.
• Framework: Build a ‘Centurion Council’:
  • 100 mentors, split as 25 authors, 25 operators, 25 coaches, 25 peers.
• The PACK Script:
  • Proof: Open with evidence of value gained.
  • Ask: A tight, specific question.
  • Close: Respect time, signal progress.
• Quote:

  “I call that bathing in the waterfall of their knowledge.” (10:21)

4. Stage 3: Invest in Your Business (15:00)

• Reinvest Where Returns Are Highest:
  • Don’t let cash pile up; reinvest in marketing, sales, or delivery—where your business has bottlenecks.
• Buy Speed:
  “The top 0.1% they don't guess. They buy speed and they reinvest in the machine that multiplies cash.” (15:10)
• Gear & Tools:
  • Upgrade your work setup for immediate gains—don’t be “the roofer using a hammer instead of a nail gun.” (15:45)
• Blueprints, Playbooks, & Consultants:
  • Pros pay for shortcuts rather than relying solely on trial and error.
  • Don’t hesitate to pay handsomely for the right expertise.
• Developing Your Team:
  • Invest in coaches and masterminds for department leads, not just the founder.
  • “When you build the people, the people build the business.” (18:57)
• Personal Story:
  • Dan’s shift after hiring coach “Bob”:

    “Two failed companies over seven years. In the first 12 months, almost a million in revenue.” (20:31)

• The Buyback Principle:

  “You don't hire people to grow your business. You hire people to buy back your time.” (22:05)

• Reinvestment Framework:
  • Set aside a fixed % of profits (suggests 20-30%) for reinvestment each quarter.
  • Use Theory of Constraints (TOC) to direct where capital unlocks growth.

5. Stage 4: Invest in Financial Assets (Stocks, REITs, etc.) (25:42)

• Financial Assets Are for Preservation, Not Creation:
  “These don't make you rich. They keep you rich.” (25:54)
• Order of Investing:
  • Only after foundation, skills, and business investments are financial assets introduced.
• Ken’s Advice:

  “Making money, that’s easy. Keeping it—super hard.” (26:45)

• Asset Allocation:
  • Stocks, S&P 500, REITs are “safety net” options, not engines for explosive growth.
• Personal Cautionary Tale:
  • Dan’s failed venture into Detroit real estate during the ’08 financial crisis:

    “I thought I was smart... turns out, not a good move.” (28:04)

• The “Buy, Borrow, Die” Strategy (29:13):
  • Buy assets and never sell them (ideally in a family trust).
  • Borrow against these assets for liquidity; loans aren’t taxed.
  • Insurance pays off the loan on inheritance, assets transfer tax-free.
• Quote:

  “I consider dollars as little workers and they need to be put to work.” (30:21)

6. How Much Should You Invest? (31:12)

• Base Guideline:
  • 10% of income into long-term, tax-efficient assets to build leverage and financial habits.
  • 10% tithing/giving as a way to “get what you want for others.”
• Personal Development Priority:
  • “My rule is if you have capital, invest in you and then you invest in your team and then you invest around people around you so everybody gets better.” (32:14)
• Direct Quote:

  “It's not about having it. It's about becoming.” (32:45)

Notable Quotes & Memorable Moments

• On Stages of Investment:

  “Step one, go get money. Step two, invest in your health. Step three, invest in your knowledge. Step four, invest in your business. Then five, do this stuff.” (30:29)

• On Community and Free Resources:

  “Even if you have no money to invest, that's the best way for you to start.” (34:05)

Timestamps of Key Segments

| Timestamp | Segment Description | |-----------|---------------------------------------------------| | 00:00 | Introduction to investing like the top 0.1% | | 01:04 | Stage 1: Foundation (Health & wellness) | | 04:11 | Stage 2: Skills & Knowledge Investment | | 10:21 | Centurion Council & PACK script | | 15:00 | Stage 3: Reinvesting in Your Business | | 20:31 | Dan’s coaching/mentorship transformation | | 22:05 | The Buyback Principle explained | | 25:42 | Stage 4: Financial Asset Investments | | 28:04 | Dan’s failed Detroit real estate investment | | 29:13 | 'Buy, Borrow, Die' & tax strategies | | 31:12 | Personal investment/rule of thumb | | 34:05 | Free resources and next steps |

Conclusion: Action & Commitment

Dan concludes by challenging listeners to commit to action, regardless of starting point or resources:

“Doesn't matter if you have no money or you have a lot of money, what's the one thing that you're going to make a commitment to?... start anything to be a better investor.” (33:23)

He urges embracing a mindset of constant personal investment as the true foundation of lasting wealth.

Further Resources:

• Martell Method Newsletter – free weekly insights on mindset, business, and growth
• Buy Back Your Time Book